Indian Gold Dealer: “Gold Is Now Trading At $1800oz.—Small Factories And Workshops Are Shutting Down”

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I had the chance this week to reconnect with Vishal Vyas, head of operations at India’s top bullion dealer, Pushpak Bullions Pvt. Ltd.
It was a powerful conversation, as Vishal indicated that the Indian Government and Central Bank is stepping up its fight against gold, with punitive taxation and trade controls. As a result he added,gold is now trading at elevated levels of $1800 oz.within the country. Despite these changes however, Indian families are still buying gold in “small quantities every month”.

Speaking towards tightening trade controls being exercised against gold, Vishal said, “Our Finance Ministry and Central Bank is trying to curb gold imports as they feel that gold imports are the major contributor to the current account deficit in the Indian economy. So since May 2013, by various methods and changes in policies, they have been trying to limit or stop imports and…[have increased] import duties on both gold and silver from 8% to 10% on gold, and from 6% to 10% on silver…They have also banned imports of [bullion] coins and medallions…those cannot be imported into India now.”

In terms of the local impact of these changes, Vishal said, “On the street level, I’ve see many of the small factories and workshops becoming non-operative over the last two weeks because they don’t have [any] gold to process. Secondly, I also see gold coming in from illegal channels in the market which is not good.”

The trade controls are also pushing the price of gold higher Vishal noted, in that, “Since import duties have risen, the gold price in the Indian market is the same as it was when gold was $1800 oz. When $1800 an oz. gold was in the market, it was 31,500 rupees per 10 grams of gold. Today gold is below $1400 oz., and the price is the same—31,500 rupees per 10 grams of gold.”

But despite the elevated pricing and increasing trade controls, Indian families are still buying gold, “[In] small quantities every month or maybe every couple of months or alternate months,” Vishal noted.

“They put 20% or 30% of their savings every month into gold…[and] when they get perks or added benefits from their commercial or professional careers…they’ve started investing 20% to 30% of that too,” he concluded.

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This was another powerful interview, conducted during a critical time in the Indian gold market. It is required listening for precious metals investors and serious market students.

To listen to the interview, left click the following link and/or right click and “save target as” or “save link as” to to your desktop:

7 thoughts on “Indian Gold Dealer: “Gold Is Now Trading At $1800oz.—Small Factories And Workshops Are Shutting Down””

All the Indian Govt. Has just accomplished is to ensure their people now OVERPAY for gold (infact impoverishing their own people to a greater extent). I could liken that to America making pot illegal, in a nation packed with potheads, they only succeeded in creating a black market for it. Did the prohibition stop people from buying whiskey? It just insured people payed more, while people’s across the world were boozin it up on the cheap! Lol! So in a nation of gold hoarders, taking away their gold imports legally is a prohibition on gold….India must be selling its gold to its people at a huge mark up! Ha! I wouldn’t be a bit suprised!

“But despite the elevated pricing and increasing trade controls, Indian families are still buying gold, “[In] small quantities every month or maybe every couple of months or alternate months,” Vishal noted.

“They put 20% or 30% of their savings every month into gold…[and] when they get perks or added benefits from their commercial or professional careers…they’ve started investing 20% to 30% of that too,” he concluded.”

Gotta love those Indians. They truly are the Earth’s natural born stackers! 🙂

in third world country or developing countries
there are only two way for fighting “inflation” ( actually because of currency become worth less every year )
buy some land… or buy gold
but for most people… buying gold more efficient and possible way ( than buy land, which is needed lot of money than gold )
is there other way to “save” some our “hard earn money” ?
how if the “real” inflation are 10-15% per year ? ( especially for daily need such as food, tranportation, education, etc )
is it possible “saving” in the other way ?
just “deposit” that money in the bank which give us 5-7% interest per year ?
it means we “losing” 5-8% of our “purchasing power” of our money although we earn interest
there is the other “riskier” way although it’s more “profitable”…
investing in agricultural business ( raising goat, cow, paddy, vegetable, etc )

people wake up , basic math ( i know americans are not good with numbers ) , should tell that today 1$ is 65 rupees . 31500:65 is 486 dollars per 10 grams , multiply 486 by 3 to get almost 1 troy oz and woalaa , the price of gold in India is about $1470 per troy oz . simple , in this country Do not trust ANY media Period . the Doc posts the same bull as the MSM

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